FISCAL IRRESPONSIBILITY, NOT THE GOVERNOR, IS BLOCKING RAIL PROJECTHonolulu, Hawaii- August 25, 2010

Statement from Mayoral Candidate Panos Prevedouros:

"Recent reports seemingly point to the Governor’s signature as the roadblock stopping rail but the fact is that rail cannot proceed because the city simply does not know how to pay for the project. This is evidenced by the FTA’s 'Low' or 'Medium Low' rating on Honolulu’s 'Financial Capacity' to build and operate the project, respectively. And this ruling came before the $4.7 billion EPA consent decree."

"Unless Senator Inouye can finance 80% of the rail project, similar to his ability to finance 80% of H3, there is no realistic way Honolulu can pay for the rail system without further massive tax increases. As of now, more than $11,480 will be taken from the purses of each household on Oahu to pay for our share of the $5.5 billion price tag."

"And what will Oahu residents receive in return for such as massive investment? According to the EIS, transit ridership will go from 6% to 7% of commuters. The current projected rail system will remove about 6,700 cars from the road at a cost nearly $1 million each. We can actually gift each driver an expensive home in town for less."

"No one can say this is a responsible use of taxpayer money."

"Even Mr. Carlisle, who promises to 'put our financial house in order' admits this is not fiscally responsible. Despite this, he wants to build a mega rail system--even bigger than the one currently planned."

"It is our belief that Hawaii’s political class is purposely waiting until after the elections, at which time it will announce a 'November surprise' of massive tax increases to pay for rail, sewers, and pay increases."